GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Franklin Credit Management Corp (OTCPK:FCRM) » Definitions » Return-on-Tangible-Equity

Franklin Credit Management (Franklin Credit Management) Return-on-Tangible-Equity : 185.86% (As of Sep. 2014)


View and export this data going back to 2012. Start your Free Trial

What is Franklin Credit Management Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Franklin Credit Management's annualized net income for the quarter that ended in Sep. 2014 was $10.91 Mil. Franklin Credit Management's average shareholder tangible equity for the quarter that ended in Sep. 2014 was $5.87 Mil. Therefore, Franklin Credit Management's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 was 185.86%.

The historical rank and industry rank for Franklin Credit Management's Return-on-Tangible-Equity or its related term are showing as below:

FCRM's Return-on-Tangible-Equity is not ranked *
in the Banks industry.
Industry Median: 10.69
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

Franklin Credit Management Return-on-Tangible-Equity Historical Data

The historical data trend for Franklin Credit Management's Return-on-Tangible-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Franklin Credit Management Return-on-Tangible-Equity Chart

Franklin Credit Management Annual Data
Trend Dec11 Dec12 Dec13
Return-on-Tangible-Equity
-9.30 -27.32 -40.52

Franklin Credit Management Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
Return-on-Tangible-Equity Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -44.32 -53.24 -18.37 -68.87 185.86

Competitive Comparison of Franklin Credit Management's Return-on-Tangible-Equity

For the Mortgage Finance subindustry, Franklin Credit Management's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Franklin Credit Management's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Franklin Credit Management's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Franklin Credit Management's Return-on-Tangible-Equity falls into.



Franklin Credit Management Return-on-Tangible-Equity Calculation

Franklin Credit Management's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2013 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2013 )  (A: Dec. 2012 )(A: Dec. 2013 )
=-2.908/( (8.637+5.717 )/ 2 )
=-2.908/7.177
=-40.52 %

Franklin Credit Management's annualized Return-on-Tangible-Equity for the quarter that ended in Sep. 2014 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Sep. 2014 )  (Q: Jun. 2014 )(Q: Sep. 2014 )
=10.912/( (4.535+7.207)/ 2 )
=10.912/5.871
=185.86 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2014) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Franklin Credit Management  (OTCPK:FCRM) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Franklin Credit Management Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Franklin Credit Management's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Franklin Credit Management (Franklin Credit Management) Business Description

Traded in Other Exchanges
N/A
Address
101 Hudson Street, 24th floor, Jersey City, NJ, USA, 07302
Franklin Credit Management Corp is a specialty consumer finance company. It is engaged in the servicing and resolution of performing, performing, and nonperforming residential mortgage loans, including specialized loan recovery and collection servicing, and in the analysis, pricing, and acquisition of residential mortgage portfolios, for third parties.
Executives
Steven W Lefkowitz director SIX HARRISON STREET, NEW YORK NY 10013

Franklin Credit Management (Franklin Credit Management) Headlines

No Headlines